The aim of this paper is to check whether intergovernmental transfers for water projects accepted in 1986 can be rationalized by a simple efficiency criterion. The empirical findings support this conjecture only partially.

Should more water be diverted to or from electricity generation? This timely question is addressed in this short volume. Two different approaches are introduced and compared: The first is a cost-benefit analysis, examining the case of re-regulating a Swedish hydropower plant in which water is...